Sterling Digest: January 17, 2012
- faithmight
- January 17th, 2012
CPI inflation projection based on market interest rate expectations and £275 billion asset purchases
The GBP is managing to strengthen in the midst of the largest drop in core inflation since April 2009. However, in the bigger picture, this rally is certainly corrective in action with sterling really only rallying versus the USD and JPY. With the USD and JPY marred with risk sentiment, the GBP versus other currencies is a better fundamental play for those that believe that lower inflation will only encourage the BoE to not raise rates at all (to respond to inflation) and more likely increase QE.
- GBPUSD Update… (50′s Blog)
- EURGBP Update… (50′s Blog)
- GBP/USD Struggling Ahead Of 1.5400 On Eastern European Sales (Forex Live)
- UK inflation rate falls to 4.2% in December (BBC)
- UK Analysis: Dec CPI Inflation Falls Sharply As Expected (Forex Live)
- Might Be Worth Keeping An Eye On GBP/JPY… (Forex Live)
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Tickers: EURGBP, FXB, GBPJPY, GBPUSD
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Lydia Idem has been investing in equities for 16 years and trading currencies actively for 5 and a half years. Her trading style is simple and short term. With a special feel for sterling, Lydia trades almost exclusively the GBPUSD and EURGBP. You can follow Lydia on Twitter and StockTwits... (more) -
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